More volume in infrastructure and real estate debt markets
November 2024
The below is a summary of an article in Financial Investigator by Hans Amesz.
The Financial Investigator round table provided an opportunity for industry experts to discuss the growing interest in infrastructure and real estate debt. During the round table the participants highlighted the benefits, risks and the evolving market dynamics surrounding the asset classes.
In short:
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Infrastructure debt is a diversifier, so investors may be missing out if they don't invest in this asset class.
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Real estate investors who have historically only invested in equity are now starting to see the benefit of real estate debt.
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A useful feature of infrastructure and real estate debt is that much of the underlying long-term cash flows are contractual in nature and may also be linked to inflation.
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Infra debt, in particular, offers investors an excellent opportunity to finance projects with a tangible impact.
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With a closed-end fund, investors in infra and real estate debt have to accept to have no liquidity for a certain period of time, which is good for their returns.
You can view the entire article in Dutch here or request the full article by emailing marketing@savillsim.com
‘Infrastructure & real estate debt are are becoming increasingly attractive to investors specifically interested in further diversifying their investment portfolios and managing downside risk.’